Turmeric settled flat due to thin supplies from the new crop as farmers hoped prices would rise, while prospects of a bumper crop and expectations supplies would increase in coming days restricted the gains.
Arrivals from the new crop is very thin farmers are holding back on hopes of better prices.
Turmeric cultivation in India usually starts by the end of May and continues until August and a lengthy harvesting season begins in January.
Rising demand for good quality finger Turmeric is likely to support the trend across the spot markets.
Attractive exports are also adding to the upsurge in prices.
Traders are expecting full fledged arrivals might start by February end.
The total production this year is expected to touch 75-85 lakh bags - higher than the 65-70 lakh bags in 2010-11.
Higher acreage from the high rates is stated the reason for the rise in expected production as per traders.
Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks.
The sowing period is from June-August and harvesting begins in January.
In Nizamabad, a major spot market in AP, the price ended at 4842.1 rupees dropped by -10.5 rupees.
Market has opened at 4580 & made a low of 4580 versus the day high of 4630.
The total volume for the day was at 1815 lots and the open interest was at 10225.
Support for Turmeric is at 4578 below that could see a test of 4554.
Resistance is now seen at 4628 above that could see a resistance of 4654.
Trading Ideas:
Turmeric trading range is 4554-4654.
Turmeric settled flat due to thin supplies from the new crop as farmers hoped prices would rise
Arrivals from the new crop is very thin farmers are holding back on hopes of better prices
The sowing period is from June-August and harvesting begins in January
In Nizamabad, a major spot market in AP, the price ended at 4842.1 rupees dropped by -10.5 rupees.
Courtesy: Kedia Commodities
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